(D) any agency
or instrumentality of any governmental unit referred to in subparagraphs (B)
["any state of the United States"] and (C) ["any territory or possession of the
United States or any other governmental unit in the United States"] of this
paragraph, provided that obligations to be eligible under this paragraph shall
be by law (statutory or otherwise) payable, as to both principal and interest,
from taxes levied or by law required to be levied or from adequate special
revenues pledged or otherwise appropriated or by law required to be provided
for the purpose of such payment, but in no event shall obligations be eligible
for investment under this paragraph if payable solely out of special
assessments on properties benefited by local improvements."
and the following language of section 1405(a)(1) authorizing
life insurers to invest in:
(1)
"Government obligations. Obligations, no in default, issued, assumed,
guaranteed or insured by (i) the United States of America or by any agency or
instrumentality thereof, (ii) any state of the United States of America, (iii)
the District of Columbia, (iv) any territory or possession of the United States
of America or any other governmental unit in the United States, or (v) any
agency or instrumentality of any governmental unit referred to in items (ii),
(iii) and (iv) above, provided that, in the case of obligations issued,
assumed, guaranteed or insured by any governmental unit referred to in item
(iv) above or any agency or instrumentality referred to in item (v) above, such
obligations are by law (statutory or otherwise) payable, as to both principal
and interest, from taxes levied or by law required to be levied or from
adequate special revenues pledged or otherwise appropriated or by law required
to be provided for the purpose of such payments, but in no event shall
obligations be eligible for investment under this paragraph if payable solely
out of special assessments on properties benefited by local improvements."
are hereby interpreted as authorizing investment in bonds or
other evidences of indebtedness, not in default as to principal or interest,
which are valid and legally authorized obligations of one of the
above-described obligors, to provide funds for the construction of a public
facility provided:
(a) the
construction of the public facility out of the revenues of which such bonds or
other evidences of indebtedness are to be payable, as to both principal and
interest, has been duly authorized by law;
(b) such law, or other applicable law,
authorizes the issuance of bonds or other evidences of indebtedness, or other
financing sufficient to construct completely such facility;
(c) the collection of adequate special
revenues to pay such bonds or other evidences of indebtedness, as to both
principal and interest, is authorized by such law or other applicable law, but
in no event shall obligations be eligible for investment under this paragraph
if payable solely out of special assessments on properties benefited by local
improvements;
(d) the cost of
construction of such facility and the special revenues to pay such bonds or
other evidence of indebtedness, as to both principal and interest, have been
estimated by qualified engineers or other experts;
(e) such revenues will be, in the judgment of
the insurer, adequate for the payment of such bonds or other evidences of
indebtedness.
